Investor Glossary-value fundInvestor Glossary-value fundInvestor Glossary-value fundInvestor Glossary-value fundInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Value Fund

The HTML to link to this page
 

A mutual fund that employs a value approach to investing is referred to as a value fund. A manager of a value fund will select stocks he/she believes are fundamentally undervalued for inclusion in the portfolio. Value fund managers typically screen for companies trading at a P/E discount to the overall market or companies in a turnaround mode. A value fund is more focused on safety than a growth fund so most value fund managers look for mature companies with ample cash flows that have an established track record of paying dividends. Value fund managers generally outperform growth fund managers during periods when the economy is weak. Because a value fund derives a portion of its returns from dividends and is not dependent exclusively on share price gains, a value fund tends to be less volatile than a growth fund.



Rate this value fund definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 1031 exchange, 1035 exchange, EBITDA, retained earnings, covered put, option premium, limit order, margin rate, phantom income, deferred tax, APR, labor relations, current ratio, LIBOR, FTSE, command economy, stock split, 144a, ex-dividend, in escrow, reverse mortgage, quality assurance, Key Rate Duration, implied volatility, per diem, risk management, inflation, dividends payable, stock market close, minority interest, diluted share, annual return, ex-dividend date, VIX, average price per share, open position, 401a, wholly-owned subsidiary, balance sheet, deferred revenue, irrevocable trust, FICO score, cancelled check, class C shares, Zero Cost Collar, real GDP, required rate of return, liquidity ratio, debt service coverage


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use